Hit the Road and Make Trade Shows Pay Off

Trade shows are a calculated risk, but can be a key factor in catapulting small startups into national sales.

CHICAGO ( TheStreet) -- This weekend, hundreds of small-business owners from across the country will head to the East Coast for the New York International Gift Fair, one of the retail industry's largest trade shows. While the size of the gathering might be overwhelming -- 35,000 attendees! -- such shows are a key factor in catapulting small startups into national sales.

Of course, signing up means taking a calculated risk. You have to pay upfront to reserve a booth, design an exhibit and print marketing materials, with no guarantee of making your money back. Is it worth it?

While first-time exhibitors might be intimidated by large trade shows, they should remember that newcomers are often prized for bringing new products to jaded buyers.

The answer is yes, if you can answer two questions: Does your industry have a trade show that caters to your specific market and attracts the buyers you want? Can you make your products stand out among hundreds of others?

Tracy Claros of Austin, Texas, knew she could. The British native had started a baked-goods company named after the traditional English dessert that was her one and only product: The Sticky Toffee Pudding Co. To build a sustainable business model, she knew she had to sell beyond her immediate geographical area. But how could she get her puddings noticed nationally?

The answer was the Fancy Food Show, a semi-annual trade show run by the National Association for the Specialty Food Trade. Wisely, Claros attended the show as a visitor first to get a feel for what was involved. "Seeing how other people designed their booths was quite inspiring," she says. She also realized she needed to expand her product line to get serious consideration from buyers.

The research paid off when Claros exhibited for the first time in 2007. "It was fabulous," she says. "We were really busy right from the beginning." By the end of the show, she had contracts with two national grocery chains, and the $10,000 she spent to exhibit has since generated hundreds of thousands of dollars in business.

While it can be intimidating to be a first-time exhibitor, Claros points out that newcomers are often prized. "Buyers are looking for something new to take to their customers," she says. "They rely on producers like me to keep their stores fresh and interesting."